Territorial dimension of Innovation and Structural Funds - the Swedish perspective ESPON workshop Brussels, 5 October 2012 Sverker Lindblad Ministry of Enterprise, Energy and Communications Division for Regional Growth Ministry of Enterprise, Energy and Communications Sweden
Innovation can be A new product or service A new process for producing a product or service A new form of organizing A new market or ways of reaching markets New competencies, resources or materials Cell phone Internet banking Lean Management Spotify Design thinking Product innovation Process innovation Organizational innovation Business model innovation Input innovation
mbbirdy, istockphoto Innovation happens through collaboration the visionary brings the idea the entrepreneur runs and organizes the realisation of the idea and combines the resources needed in this the sales person commercializes or disseminates the solution the funder believes in the potential value in the idea and supplies capital the customer demands new solutions competitors or other agents copy and further disseminate the solution In business, public sector and civil society
Main finding from ESPON innovation projects - R&D (and formal knowledge in general) does not necessarily equate innovation; - innovation does not necessarily equate regional growth. these linkages are strongly mediated by local territorial assets. Source : ESPON KIT project
Investment in R&D and Firstly: Not a direct link between Innovative capacity Näringsdepartementet
Secondly: Not a direct link between Innovative capacity and Performance (GDP per capita) Näringsdepartementet
Does innovation generate increases in GDP growth rates? Elasticity of GDP growth to innovation by patterns of innovation Reykjavik Canarias Oslo Stockholm Helsinki Tallinn Guadeloupe Guyane Martinique Réunion Yes, but if innovation achieves a critical mass Riga Madeira Dublin Amsterdam London Bruxelles/Brussel Luxembourg Paris Bern København Warszawa Berlin Praha Wien Bratislava Budapest Vaduz Vilnius Minsk Acores Kyiv This map does not necessarily reflect the opinion of the ESPON Monitoring Committee Kishinev Imitative innovation generates lower GDP growth rates than new innovation Ljubljana Zagreb Beograd Bucuresti Madrid Roma Sarajevo Sofiya Podgorica Skopje Tirana Ankara Lisboa Athina Nicosia El-Jazair Tounis Politecnico di Milano, ESPON KIT Project, 2012 Valletta 0 260 520 km Regional level: NUTS2 Source: Own elaboration, 2012 Origin of data: EUROSTAT, 2012 EuroGeographics Association for administrative boundaries Legend No data Imitative innovation area = no impact Smart and creative diversification area = 0,425 Smart technological application area = 0,434 Applied science area = 0,632 European science-based area = 0,810 Pattern 5 Pattern 4 Pattern 3 Pattern 2 Pattern 1
Territorial patterns of innovation Territorial patterns of innovation in Europe Reykjavik Pattern 1= A European science-based area Canarias Guadeloupe Martinique Réunion Pattern 2 = An applied science area Helsinki Dublin Oslo København Stockholm Tallinn Riga Vilnius Minsk Guyane Madeira Pattern 3 = A smart technological application area Acores Amsterdam London Bruxelles/Brussel Luxembourg Paris Bern Vaduz Warszawa Berlin Praha Wien Bratislava Budapest Kyiv This map does not necessarily reflect the opinion of the ESPON Monitoring Committee Kishinev Pattern 4 = A smart and creative diversification area Ljubljana Zagreb Beograd Bucuresti Madrid Roma Sarajevo Sofiya Podgorica Skopje Tirana Ankara Pattern 5 = An imitative innovation area Lisboa Athina Nicosia El-Jazair Tounis Politecnico di Milano, ESPON KIT Project, 2012 Valletta 0 260 520 km Regional level: NUTS2 Source: Own elaboration, 2012 Origin of data: EUROSTAT, 2012 EuroGeographics Association for administrative boundaries Legend No data Imitative innovation area Smart and creative diversification area Smart technological application area Applied science area European science-based area
Thinking territorial is smart (1) Regional innovation strategies for smart specialisation are integrated, place-based transformation strategies that: 1) concentrate public resources on innovation and development priorities, challenges and needs; 2) outline measures to stimulate private RTD investment; 3) build on a region's capabilities, competences, competitive advantages and potential for excellence in a global perspective; 4) foster stakeholder engagement and encourage governance innovation and experimentation; 5) are evidence-based and include sound monitoring and evaluation systems. Source : European Commission 2011 Smart Specialisation Platform http://ipts.jrc.ec.europa.eu/activities/research-andinnovation Ministry of Enterprise, Energy and Communications Sweden
Thinking territorial is smart (2) Smart specialisation is a dynamic strategic process where regions and Member States identify their long term competitive advantages based on local strengths, and define those actions that can lead them to maintain and/or create their competitive positition Source : Innovation Union Competitiveness Report 2011 Ministry of Enterprise, Energy and Communications Sweden
Thinking territorial is smart (3) Smart innovation policies may be defined as those policies able to increase the innovation capability of an area by boosting effectiveness of accumulated knowledge and fostering territorial applications and diversification, on the basis of local specificities and the characteristics of already established innovation patterns in each region. Source : ESPON KIT project Ministry of Enterprise, Energy and Communications Sweden
Target: R&D EU 3 % of GDP SE 4 % of GDP 12
Knowledge intensive specialisation Employment in High-tech manufacturing and R&D Knowledge intensive business services (KIBS) Näringsdepartementet
Concentration of ERDF-investments Research and Innovation SMEs competitiveness Energy efficiency and renewable energy 6% 60% 20% 44% Developed regions and transition regions Less developed regions Ministry of Enterprise, Energy and Communications Sweden
Key drivers of regional growth Education and training, above all appear to be critical for all types of regions. This reinforces the case for regional development policies that are differentiated to address the different constraints that may bind regions at different levels of development. The proportion of the workforce with low skills appears to have a greater impact on growth than the share with tertiary qualifications. The drag effect on growth of a large population of very low-skilled workers can be very great. Policies to address the plight of the low-skilled may thus be as important for growth as policies aimed at expanding higher education. Source : OECD June 2012 Ministry of Enterprise, Energy and Communications Sweden
Thank you for your attention sverker.lindblad@enterprise.ministry.se Ministry of Enterprise, Energy and Communications Sweden